Rangers have rejected Rangers First’s potential offer to loan the club £500,000 after the fan group asked its members for approval.
In a statement published via the official club website, Rangers said: “The Club is not considering further loans at this time beyond what has already been committed and announced. However, any offer from Rangers First will be considered as part of any future fundraising.”
Rangers First officials had hoped the unsecured loan would be converted into shares once the club ‘regains its stock market listing’.
In a letter sent their members, the group said: “Rangers First is the eighth largest shareholder in the club and we remain committed to increasing your shareholding in the club. We are always looking at ways in which to build our holding while also contributing to the rebuilding of our club and we have such an opportunity to present for members’ approval today.
“We believe you, as our members, want to help to drive the push for promotion and get our team and club back to where we belong.
“As you know loans have been provided to the club and the Rangers First board also want to give our members the option to contribute. We are therefore asking you to decide whether or not to join with Dave King, the Three Bears and others and offer the club a loan of half a million pounds. If the necessary approvals are obtained, then the intention is that the loan will be converted to shares which will increase the shares held by Rangers supporters in the club.
“The loan would be on the same terms as Dave King and the Three Bears and would be made available in the middle of January with drawdowns through to the end of the season. The loan will be interest-free, unsecured and will run until a share or rights issue can take place with a longstop date for repayment of two years. The club would also have the option of being able to repay it at any time in that period.
“Your board has had much discussion and debate regarding this and believes that this may be one of the best ways for Rangers First to help the club continue to rebuild, develop and expand. This is a key issue on which RF asks its members to decide, we are therefore asking members to approve a loan of half a million pounds to Rangers International Football Club PLC.”
The club also dismissed reports that chairman Dave King would match the level of funding that Rangers First would loan the club.
Rangers’ statement continued: “It should also be understood that Rangers First was not approached by the Club for funding and, despite what has been incorrectly reported, had no discussion whatsoever with the chairman, Dave King, that their funding, if accepted, would be matched by Mr King.”
Despite knocking back the potential offer from the Rangers supporters group, the club stated their committment to ‘forging even closer links with supporters’ and that they are ‘working on a new initiative to make this possible’.
However, the club hope that all the fans groups will participate in purchasing a ‘larger stakeholding’ in the future.
Meanwhile, Brentford have rejected a £100,000 offer from Rangers for midfielder Toumani Diagouraga, with the English championship side saying that the offer was well below their valuation of the player.